Salesforce competitor to go public on Nasdaq
A Freshworks IPO is coming to market soon. The company is envisioning a valuation of nearly $ 10 billion in its public debut. Here’s what investors need to know …
Freshworks IPO: About the Company
Freshworks is a Software as a Service (SaaS) provider. Girish Mathrubootham and Shan Krishnasamy founded the company in 2010. The company was started in Chennai, India. Today, the company is headquartered in San Mateo, California, with 13 global bases.
The company focuses on customer support and IT projects. It claims to take “a new approach to building and delivering software as a service that is affordable, quick to implement, and designed for the end user.”
Freshworks is one of the new generations of software as a service companies aimed at simplifying technology for businesses. It has a product suite comprising IT, customer service, sales, marketing and human resources solutions.
Freshworks has come a long way since its launch in Chennai, India. It currently has more than 50,000 customers in 120 countries. Some of Freshworks’ customers include Klarna, Bridgestone, Pearson, and OfficeMax.
Freshworks IPO: the SaaS market
The company has experienced significant growth and shows no signs of slowing down. In filing the prospectus, Freshworks stated …
We believe that the continued growth of our business depends on identifying, developing and maintaining strategic relationships with additional channel partners who can generate substantial revenue.
But the SaaS space is full of competition. Discover these SaaS actions. And Freshworks is taking on some industry giants like Microsoft, Salesforce, and Oracle. The company will need to demonstrate that it offers something unique that many of these other players, especially some large companies, cannot match.
To do this, the company differentiates itself from its competitors by the ease of use of the platform. In the S-1 file, Freshworks declares …
We believe our products offer compelling competitive differentiation with its transparent pricing, instant integration, scalability and customization, user productivity benefits, and a tangible return on investment. This competitive differentiation positions us to replace existing solutions as well as to seize new new opportunities by replacing in-house solutions, such as emails or spreadsheets, with Freshworks products.
Now that we have an overview of the company and the market, let’s explore some financial data for the Freshworks IPO …
Freshworks Filing Reveals Growing Revenue
Detailed financial information can be found in the Freshworks IPO prospectus, giving you a better overview of the company’s finances. If you’re looking for FRSH stocks, let’s take a look at the details.
Freshworks highlights some key information for investors. The company’s balance sheet data can be summarized as follows …
Returned: The company recorded an increase in its turnover. Freshworks reported revenue of $ 172.4 million for fiscal 2019. In 2020, Freshworks reported $ 249.7 million for the year, representing year-over-year growth. other by nearly 45%.
Gross profit: The gross profit of the company increased. Freshworks reported gross profit of $ 135.9 million for the full year 2019. In 2020, the company reported gross profit of $ 197.2 million for the year.
Net income / (loss): Freshworks has reported net losses over the years. For the year 2019, the company recorded a net loss of nearly $ 31.1 million. But for the year 2020, the company’s net losses reached $ 57.3 million.
Species: Freshworks’ cash flow continues to increase. The company recorded $ 75 million in cash in December 2019 and $ 95.4 million in December 2020. By mid-2021, cash had soared to nearly $ 105 million.
Total assets and liabilities: Freshworks’ total assets and total liabilities increased. As of December 31, 2019, the company reported total assets of $ 321.8 million and total liabilities of $ 109.9 million. As of December 2020, Freshworks had total assets of over $ 367.4 million and total liabilities of $ 169.1 million.
Freshworks’ recent filing gave a price range that could value the company up to $ 9.6 billion. If you’re interested in the details, let’s take a closer look.
Freshworks IPO filing details
The Freshworks IPO is scheduled to take place on September 22. The company filed on August 27 and set its terms on September 13.
The shares are expected to cost between $ 32 and $ 34 per share. Freshworks is offering 28.5 million common shares. At the high end, the company could raise up to $ 969 million.
Freshworks could have a valuation of up to $ 10 billion when it debuts on the stock exchange. The company has requested that Freshworks stock be traded on the Nasdaq Exchange under the ticker symbol “FRSH. “
Morgan Stanley, JP Morgan and Bank of America will lead the proposed offering.
As always, be sure to do your research before investing. IPOs can be volatile in the first few months, and stock prices are constantly changing. But if you are interested in IPO investing, check out our recent top IPOs and our IPO calendar. We update it daily to give you the latest news on upcoming and filed IPOs.
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About Aimée Bohn
Aimee Bohn is a graduate of the College of Business and Economics at Towson University. Her experience in marketing research helps her uncover valuable trends. Researching IPOs and other trends has been his main focus over the past year. When Aimee isn’t writing for Investment U, you can usually find her doing graphics or traveling with friends.